© 2005 Watermelon Mountain Web Marketing 1 Trends in E-Commerce NMSU Extension Service Enhancing Economic Prosperity In New Mexico’s Frontier Communities Through E-Commerce Mesalands Community College Tucumcari, NM 9/9/05 Jan Zimmerman, Author Marketing on the Internet 6th Ed., Maximum Press Watermelon Mountain Web Marketing 4614 Sixth St. NW Albuquerque, NM

The Web: A Moving Target Nothing stands still Need to plan on major site revision every 3-5 years just to keep up Watch for changing markets, demographics, globalization, technology, laws, taxes

Many Reasons for Corporate Web Sites

B2C and B2B e-Commerce U.S

Changing Demographics Women are now more than 50% of Internet users –Women influence more than 2/3 of all consumer purchasing dollars Digital divide is closing somewhat –More minorities online –May not have latest equipment or high-speed access

Language Use/Sales Will Shift Globally Over Time Forrester Research predicts that while the US & North America currently preside over the majority of online transactions, that will shift in the coming years as Asia and European nations become more active. # People Online % world Total pop. by Language (M) online pop 2004 (M) English % 508 Non-English % 5,822 European Languages % 1,218 (non-English)

Changing Language of Users

Globalization of E-Commerce Of $6.8 Trillion online 2004 (global B2B & B2C) –8.6% of all global sales in 2004 By Country% of Online Sales –U.S. 47.0% –Japan 13.0% –Germany 5.7% By Region –North America50.9% –Asia/Pacific24.3% –Europe22.6% –Latin America 1.2% –

Impact of Technology Broadband (cable, DSL) increasing rapidly in U.S. –Less concern about download time –More rich media Streaming audio & video Higher resolution monitors at home/work Wi-Fi (wireless access) –Cell phone channel & competition The “new” Internet

Ever-Increasing Customer Expectations Set by high-end sites, e.g. Amazon Speed Ease of use & navigation Shopping carts with features Online payment by credit card –Other options still required Credibility

Legal & Tax Issues Sales tax on Internet sales eventually Spam, privacy, and kid protection laws increasing More awareness of copyright, trademark, and other intellectual property issues E-commerce law slowly being defined by cases

It’s Worth It! Internet is an advertising medium Internet is a storefront Internet needs to be a part of any business that wants to grow or maintain market share